THEBUSINESSBYTES BUREAU

BHUBANESWAR, JUNE 1, 2026

In a major push towards sustainable mobility and clean energy adoption, the Odisha Government has made the procurement of electric vehicles (EVs) mandatory for all departments, government-supported institutions, and state-funded bodies for official use from June 1, 2026.

The Finance Department has issued a detailed memorandum outlining the new procurement guidelines, aimed at reducing fuel expenditure, enhancing energy efficiency, and supporting the state's environmental commitments.

The decision comes amid rising fuel prices and global energy uncertainties triggered by the ongoing West Asia crisis. Under the new policy, all future purchases of official vehicles must be electric, with exceptions permitted only under special circumstances and subject to approval.

The memorandum specifies vehicle procurement limits based on official rank. The Governor, Chief Minister, Chief Justice, and High Court Judges will be eligible for EVs costing up to ₹30 lakh. Ministers, the Chief Secretary, and senior administrative officers can procure vehicles worth up to ₹25 lakh, while District Judges, Collectors, and Superintendents of Police are entitled to vehicles costing up to ₹20 lakh.

To ensure fiscal discipline and transparency, departments must obtain prior concurrence from the Finance Department before making any EV purchase. New vehicles can be acquired only after existing vehicles complete their prescribed service life and are duly scrapped.

The government has approved electric vehicle models from Tata, Mahindra, and Maruti for official procurement. The directive also reinforces the "One Officer, One Vehicle" principle, which will be strictly implemented across all departments and institutions.

The policy extends beyond government departments to include public sector undertakings, universities, autonomous bodies, and societies receiving state support, ensuring a broad-based transition to electric mobility across Odisha's public sector ecosystem.

Officials said the initiative is aligned with Odisha's long-term sustainability agenda and complements India's national mission to accelerate the adoption of clean transportation and reduce dependence on fossil fuels.